Self-employed? How to get a mortgage approved

Being self-employed is great for flexibility, but it can make mortgage approval feel complicated. Lenders want to see stable, verifiable income, and business owners often write off expenses that lower their taxable income.

What lenders usually ask for

Expect to provide two years of personal tax returns and Notices of Assessment, proof that your taxes are paid up, and business documents such as financial statements or articles of incorporation. The longer and steadier your history, the more options you will have.

Options beyond the big banks

Some lenders offer programs designed for self-employed borrowers that look at stated income or business bank statements, sometimes with a larger down payment. Alternative and private lenders can also help in the right situation, usually at a higher cost.

Get organized early

Talk to a broker well before you plan to buy. Small changes — like how you pay yourself or when you file — can make a real difference to what you qualify for.